KCCI slams restoration of affidavit condition

Demands its suspension until alternative measures are taken

KARACHI:

Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Jawed Bilwani has denounced the reinstatement of the requirement of filing an affidavit with sales tax returns, demanding that the authorities suspend the condition immediately until effective alternative measures are taken.

The KCCI president stated that in response to their request, the Federal Board of Revenue (FBR) rightly withdrew the burdensome requirement for September 2024 and notified it through a press statement.

It categorically mentioned that the filing of the affidavit would not be needed for returns being submitted for the tax period of September 2024, which were due in October 2024.

It also stated that the FBR would actively solicit alternative proposals from stakeholders until October 31 to address the serious issue of falsified sales tax returns, and finally, the board would consider modifying the affidavit requirement in light of the legitimate stakeholders' concerns.

"No consultations with stakeholders have taken place, nor have any viable alternative solutions been explored," Bilwani remarked.

He stated that the business community was already grappling with immense pressures and the ill-conceived requirement would only exacerbate their challenges, contributing to unnecessary hassle and an environment of intimidation.

Bilwani noted that the obligation to file the affidavit was fraught with significant challenges. Taxpayers and employees cannot possibly provide guarantees or assurances regarding tax credits that may arise from fraudulent or fictitious invoices linked to their suppliers and subsequent tiers in the supply chain.